Question
1. If sales volume decreases, and all other factors remain unchanged, the contribution margin ratio will decrease t/f. 2. In two companies making the same
1. | If sales volume decreases, and all other factors remain unchanged, the contribution margin ratio will decrease t/f. |
2. | In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will be higher in the company with a higher proportion of fixed expenses in its cost structure. t/f |
3. | At the break-even point, the total contribution margin and fixed expenses are equal. t/f |
4. | All other things the same, an increase in total fixed expenses will increase the break-even point. t/f |
5. | All other things the same, a reduction in the variable expense per unit will decrease the break-even point. t/f |
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